[ad_1]
Bitcoin briefly climbed above $ 18,000 on Wednesday, after passing the $ 15,000, $ 16,000 and $ 17,000 milestones in the past few days. The record high for bitcoin is just under $ 20,000. The total value of all bitcoins in circulation is now over $ 300 billion, even close to an all-time high.
The cryptocurrency, which has more than doubled in value this year, has caught on lately for a variety of reasons.
“There is a lot of stimulus going on globally,” said Rich Rosenblum of GSR Markets, a cryptocurrency trading firm. He noted that the devaluation of the dollar and other currencies could push bitcoin even higher.
“This bull run is different from 2017. We are seeing adoption by major players,” said Alex Adelman, CEO and co-founder of Lolli, a bitcoin rewards company, in an email to CNN Business. . “They are all betting a lot on bitcoin as a safeguard against the inflation, uncertainty and turmoil of 2020”.
However, bitcoin is not for the faint of heart.
The price has often gone up and down, sometimes within hours or minutes, and is prone to mini flash crashes. Prices also plummeted in March – along with almost everything else – when the coronavirus stopped the US economy.
Some pundits are wondering if bitcoin will have trouble moving much higher from here given how explosive the current rally has been.
The $ 20,000 level could be a “psychological barrier,” said George McDonaugh, CEO and co-founder of cryptocurrency and blockchain investment firm KR1, in an email to CNN Business.
McDonaugh said some longtime bitcoin bulls, people known in the crytpo community as HODLers (which is a misspelling of hold or an acronym for “Hold On for Dear Life” depending on who you ask) may finally be looking for. to take profits and sell if bitcoin crosses the $ 20K milestone.
“Beware … as we’ve seen so many times in the past, Bitcoin can surprise you,” said McDonaugh.
The big pop in bitcoin has also benefited several publicly traded companies that are players in the world of cryptocurrencies.
.[ad_2]Source link
